The IMF is delighted to announce that it just approved a 3.2 billion disbursement of cash for Greece, its fifth, as part of the 12 billion in money that Greece needs in order to continue operating in the months f July and August.

And just for what purpose will this money be used, one may ask? Well, as explained a few weeks ago, in Greek Math: 12 Billion In, 18.2 Billion Out the entire amount will be promptly recycled by global financial institutions in the form of debt maturities and interest payments, which amount to 18.2 billion in the months of July and August. Simply said ECB, EU and IMF money in, money owed to bankers out.

The kicker: 17.09% of the money coming from the IMF, comes from, that's right dear US taxpayer, you (and since 21% of the quota contributions allocated to the IMF are deemed "non-usable", the actual number funded by the US is likely much higher). But this plot has a bonus kicker: as we reported on Wednesday, the actual Greek debt is no longer owed by European banks to the extent it had been previously expected: a development that threatens to scuttle the entire second Greek bailout plan as currently proposed.

So as the banks have been selling Greek debt, who has been buying? Mostly hedge funds, such as everyone's favorite John Paulson. So to recap: US taxpayers have just paid out about $780 million of the $4.6 billion in order to fund interest owed to... hedge funds.

IMF is "delighted"? lmao! I wonder if the IMF will be like "delighted" that when all is said and done, despite the multiple bailouts of Greece, that Greece still defaults...a default that will lead to a domino of defaults in Europe. IMF apparently has not received the memo concerning Einstein's definition of insanity.....idiots. =.=

In answer to your question: Just yesterday, the European Central Bank said they would continue to accept Portuguese bonds as collateral for new loans, even though Moody’s had just downgraded Portuguese debt to junk status. In other words, Portugal is bankrupt, but the ECB will continue throwing bad money after bad.

Today, trading had to be halted on Italian exchanges for a number of Italian banks and insurance companies with exposure to PIIGS debt.

Bailouts?? Are not the payments for interest due only with no principal reductions?...until the next rollover? Are not all so-called bailouts only interest related, and only good until the next group of rollovers comes due?

18
posted on 07/08/2011 8:47:25 PM PDT
by givemELL
(Does Taiwan eet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)

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